Journal of Risk and Insurance

This academic risk management and insurance journal provides research in industrial organization of insurance markets, management of risks in the private and public sectors, insurance regulation and more.

Articles from Vol. 68, No. 2, June

Age, Period, and Cohort Effects on Life Insurance Purchases in the U.S
ABSTRACT Previous studies of life insurance demand mainly employ multivariate regression analysis to examine the social, economic and demographic effects on life insurance purchases. However, this causal modeling approach can not separate the age,...
Code of Professional Ethics of the American Institute for CPCU
Code of Professional Ethics of the American Institute for CPCU, sixth edition, ed. Eric A. Weining, 1999, Malvern, Pa., American Institute for CPCU. This text aims to achieve two primary purposes. First, it serves as part of the required study material...
Electronic Commerce: Security, Risk Management and Control
Electronic Commerce: Security, Risk Management and Control, by Marilyn Greenstein and Todd M. Feinman, 1999, New York: McGraw-Hill. With the rapid growth of e-commerce, one can readily imagine the number of loss exposures that have already surfaced....
Employee on Leave Remains a "Full-Time" Employee for Purposes of Benefit Plan and Was Entitled to Death Benefit Coverage
Tester v. Reliance Standard Life Insurance Company, 228 F.3d 372 (4th Cir. 2000) (applying federal common law) Annie Ruth Tester began working for Bibb Company as a full-time employee on June 1, 1993. In August 1993, Bibb obtained group accident...
Employer's Failure to Disclose Company's Consideration of "Voluntary Separation Program" Does Not Qualify as Breach of Fiduciary Duty Claim under Erisa; Hence, Claim Does Not Arise under Erisa and Federal Court Has No Subject Matter Jurisdiction
Young v. Washington Gas Light Company, 306 F.3d 1200 (D.C. Cir. , 2000) Ronald Young and other employees of Washington Gas Light retired during 1996 while restructuring of the company was under consideration but before a final plan was adopted....
Federal Appeals Court Finds That Policyholder's Refusal to Undergo Examination under Oath Does Not Void Coverage Unless Insurer Is Prejudiced
Talley v. State Farm Fire & Casualty Company, 223 F.3d 323 (6th Cir., 2000) (applying Tennessee law) George Talley, like many Americans, had a homeowners insurance policy with State Farm. After a fire damaged his house, he submitted a claim....
Handbook of Utility Theory: Principles, Vol. 1
Handbook of Utility Theory: Principles, Vol. 1, ed. Salvador Barbera, Peter J. Hammond, and Christian Seidl, 1998, Dordrecht, the Netherlands: Kluwer Academic Publishers. Reviewer: Gautam Vora, University of New Mexico This is the first volume in a two-volume...
Health Plan's Exclusion for Organ Transplants Does Not Exclude Coverage for High Dose Chemotherapy with Peripheral Stem Cell Rescue to Attack Breast Cancer
Simkins v. NevadaCare, Inc., 229 F.3d 729 (9th Cir. 2000) (applying federal common law) Ruby Simkins worked for M & K Enterprises, her husband's company. In October 1996, she was diagnosed with Stage I breast cancer, which her doctors treated...
Increase in Risk and Weaker Marginal-Payoff Weighted Risk Dominance
ABSTRACT This study investigates the comparative statics of an increase in risk for all risk-averse individuals with positive prudence. By extending the concept of risk dominance defined by Collier (1995), this study provides the necessary and sufficient...
Increase in Risk and Weaker Marginal-Payoff-Weighted Risk Dominance
ABSTRACT This study investigates the comparative statics of an increase in risk for all risk-averse individuals with positive prudence. By extending the concept of risk dominance defined by Gollier (1995), this study provides the necessary and sufficient...
In Sickness and in Health: An Annuity Approach to Financing Long-Term Care and Retirement Income
ABSTRACT We examine the implications of the positive correlation of mortality and disability for the benefits of combining an immediate income annuity with long-term care disability coverage at retirement ages. Specifically, we show that combining...
Law of the Internet
Law of the Internet, by George B. Delta and Jeffrey H. Matsuura, 1999, Gaithersburg, N. Y.: Aspen Law & Business Publishers. Dr. Martin Luther King once said, "All progress is precarious, and the solution of one problem brings us face to face with...
Losses from Erroneously Underpriced Products Due to Mislabeling Not Covered as Property Loss Claim under Commercial Liability Policy
Wisconsin Label Corp. v. Northbrook Property & Casualty Ins. Co., 607 N.W.2d 276, 233 Wis., 2d 314 (Wisconsin Supreme Court, 2000) Marketing promotions such as a "2 for 1" sale or "buy one, get one free" can often serve as a "loss leader" for...
Managing Business Risk: An Organization-Wide Approach to Risk Management
Managing Business Risk: An Organization-Wide Approach to Risk Management, by Peter C. Young and Steven C. Tippins, 2000, New York: AMACOM Reviewer: Peter R. Kensicki, Eastern Kentucky University This book was written for managers not involved in or recently...
Mortality Swaps and Tax Arbitrage in the Canadian Insurance and Annuity Markets
ABSTRACT The authors analyze a tax arbitrage opportunity that results from engaging in two seemingly counterintuitive transactions in the Canadian insurance market. Specifically, if an individual acquires a fixed immediate life annuity and then...
MURDER OF TENANT Is "ACCIDENT" UNDER LANDLORD'S LIABILITY POLICY
Agoado Realty Corporation v. United International Insurance Company, 95 N.Y.2d 141,733 N.E.2d 213, 711 N.Y.S.2d 141 (New York Court of Appeals, 2000) Agoado Realty owns apartment buildings. In 1996, a tenant in one of them was murdered by an unknown...
New York Rules That General Pollution Exclusion Does Not Bar Coverage for Lead Paint Claims against Building Owner
Westview Associates v. Guaranty National Insurance Company, 95 N.Y.2d 334, 740 N.E.2d 220, 717 N.Y.S.2d 75 (New York Court of Appeals, 2000) Gabriella Humphrey is an infant whose parents claimed she suffered injuries from exposure to lead paint...
Recent Court Decisions
HEALTH PLANS EXCLUSION FOR ORGAN TRANSPLANTS DOES NOT EXCLUDE COVERAGE FOR HIGH DOSE CHEMOTHERAPY WITH PERIPHERAL STEM CELL RESCUE To ATTACK BREAST CANCER Simkins v. NevadaCare, Inc., 229 EM 729 (9th Cir. 2000) (applying federal common law) Ruby Simkins...
RHODE ISLAND SUPREME COURT LINES Up ON SIDE OF POLICYHOLDER REGARDING CONSTRUCTION OF PRE-1986 QUALIFIED OR "SUDDEN AND ACCIDENTAL"
POLLUTION EXCLUSION; FOCUSES BOTH ON DICTIONARY AND DRAFTING HISTORY OF EXCLUSION Textron, Inc. v. Aetna Casualty and Surety Company, 754 A.2d 742 (Rhode Island Supreme Court, 2000) Although the qualified pollution exclusion has not been part...
SURVIVOR BONDS: HELPING to HEDGE MORTALITY RISK
ABSTRACT One of the key problems facing annuity providers is mortality risk, the risk of underestimating mortality improvements. The authors argue that the government could help the issuers of annuities to hedge aggregate mortality risk by introducing...
The Case for Experience Rating in Medical Malpractice Insurance: An Empirical Evaluation
ABSTRACT Experience rating is largely absent from medical malpractice insurance contracts. This article presents evidence that physician risk differences persist, and it develops an empirical model for experience rating with a semi-parametric estimator....
Two STATE SUPREME COURTS INVOKE INCONTESTABILITY STATUTE to BAR LIFE INSURER FROM DENYING CLAIMS THROUGH DEFENSE OF PREEXISTING CONDITION
Galanty v. Paul Revere Life Insurance Company, 23 Cal. 4th 368, 97 Cal. Rptr. 2d 67, 1 P.3d 658 (2000); Marie Deonier & Associates v. Paul Revere Life Insurance Company, 9 P.3d 622 (Mont., 2000) The incontestability clause has been a part of...
Workers Compensation Statute Unconstitutional to the Extent It Requires Live Testimony in Claims of Mental Impairment but Accepts Documentary Evidence Alone in Cases of Physical Impairment
Esser v. Industrial Claim Appeals Office of the State of Colorado--Colo.--, 8 P.3d 1218 (Cob. App., 2000, modified on denial of rehearing, March 23, 2000, cert. granted, August 21, 2000). Colorado's workers compensation statute provides that, where...